Egypt’s net foreign asset surplus fell 27% to USD 9.7 bn in August, down from USD 13.3 bn in July, according to Enterprise calculations based on Central Bank of Egypt figures. This represents our fourth consecutive month in the green — the country has maintained a surplus since May, when net foreign assets shifted from deficit to surplus for the first time since February 2022.

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Driving the decline were commercial banks: Net foreign assets in commercial banks were back in the red, coming in with a deficit of USD 536 mn, down from a surplus of USD 2.8 bn in July. While liabilities remained essentially unchanged, dipping USD 81 mn throughout the month, assets fell 11% to USD 27.6 bn.

The central bank fared much better, but did see its surplus shrink a little over the month: The central bank’s net foreign asset surplus dipped 1.9% to USD 10.3 bn, down from USD 10.5 bn in July. Assets fell USD 115 mn throughout the month, while liabilities increased by USD 124 mn.

Remember: Egypt’s net foreign asset deficit reached an all-time high back in January, recording USD 29.0 bn, before starting to gradually drop in the months that followed following the Ras El Hekma agreement, the float of the EGP, and the inflows that followed.

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